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Ericsson Moves SC To End Insolvency Case

Ericsson filed an application in the Supreme Court on Monday, requesting to end insolvency proceedings it started against Anil Ambani-led Reliance Communications. The telecom company too filed an affidavit in the top court, seeking to drop contempt charges against its chairman since the company has settled the matter with the Swedish equipment supplier as per court’s orders.

An Ericsson spokesperson confirmed the company moving the court to end the proceedings. RCom didn’t respond to ET’s request seeking comment until press time Monday.

The filings from both sides will bring to an end Ericsson’s 18-month battle with RCom over network maintenance arrears.

This development comes a week after Reliance Industries’ chairman Mukesh Ambani saved his younger brother, Anil, from imprisonment by helping him clear 580 crore of dues including penalty interest to Ericsson. The Supreme Court had set a March 19 deadline for RCom to clear the dues, failing which it said its chairman would go to jail.

The battle between Ericsson and RCom started when the Swedish company moved a bankruptcy court in 2017, alleging that it had not been paid dues of around Rs 1500 crore after signing a seven-year deal in 2013 to operate and manage the telco’s nationwide network.

The case moved from the National Company Law Tribunal to the National Company Law Appellate Tribunal, where a settlement amount of Rs550 crore was reached between the two parties.

After RCom failed to meet deadlines, including those mandated by the Supreme Court, Ericsson filed for contempt of court against the telco’s chairman.―Gadgets Now


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